Empathy in Finance: How Financial Pros Can Help Clients Heal from Financial Trauma
What does "holding space" look like for Black and Brown people?
Have you ever felt judged or misunderstood when consuming financial content from a
Book
Podcast
Course
Educator
Financial Professional ?
I know I’ve been made to feel guilty about what I’ve done, haven’t done, or even don’t feel comfortable doing financially. Sometimes there’s a huge mental block that doesn’t allow you to pass Go! and get your $200. While sometimes that block can be the result of trauma, other times that block (or resistance) can be caused by things like convenience, means, personal choice, culture, etc. The internal dissonance between what you are TOLD you should be doing and what feels right to you intuitively is a tough one to navigate. And determining the difference between that intuition and a greater trauma is even more difficult.
Once upon a time I worked for a bank that offered ‘complimentary’ financial reviews for their employees with a financial advisor. I knew nothing about investing other than the fact that I wanted to do it — partially because I was told I should be doing it— so I booked an appointment. The advisor was an old White guy who moved my appointment to help a ‘real customer’ and then sat down with me and asked me my risk tolerance. I had no idea what he was talking about so he gave me a series of forms to look over to determine how conservative or aggressive I wanted to be when investing. After determining that I was young and capable of recovering from fluctuations in the market he started showing me fund families that I could choose from.
This guy might as well have been speaking Chinese to me.
After being rescheduled, rushed through our session, and then dismissed after he learned I was not interested in signing up for a managed plan, I decided that I would not work with a “financial advisor” after all and that it was up to me to fill in the blanks. Fortunately I found someone who was capable of opening my first brokerage account that was self directed. He opened the accounts and sent me on my way and I’ve been investing on my own ever since.
I don’t share that story to say that all financial advisors are bad. In fact for a long time I thought that all securities licensed sales people were the same. It wasn’t until later that I learned that there are many designations with differing levels of specialization that can help according to your goals, and that the term “financial advisor” is an umbrella term that could consist of many licensed (and unlicensed) professionals… even I could call myself one!
I did share that story however to illustrate a point that many people have either encountered directly or indirectly when it comes to the sophistication of financial products, services, and expertise. The fact of the matter is some people just want the sale and if you can’t provide that to them they don’t care. Other times you have highly educated and well meaning professionals who view money, success, and their education through a lens that simply can’t see you— your ambitions, your obstacles, your beliefs— even if they look like you.
Recently I stumbled upon #TherapistTwitter which is apt because of the therapeutic nature of financial counseling. I’ve been seeing a lot of parallels between how Black therapists in particular break down, discuss, and hold space for other Black people. Therapy as a whole has been gaining popularity among Black and Brown communities but still has huge stigmas attached to it especially within a demographic of Black men.
When I look at the parallels between the way that inclusion looks in the finance industry and how that looks in the mental health field one thing is very apparent— representation not only matters in that we fill those spaces, but it matters in how we model behaviors and insights in those spaces. That means we show up authentically, we communicate authentically, we share authentic experiences, and sometimes that means we challenge the status quo.
This week I got to catch up with Nicole Lewis to discuss what that looks like from a mental health perspective.
Nicole Lewis, LCSW, LICSW is a Licensed Mental Health Therapist & Life Coach that specializes in working with Black adults. She serves clients residing in AL, FL, MS, TX, VT and internationally. Nicole offers weekly homework through her email list to cover the gaps for adults who are unable to see a therapist or just want more support in between sessions.
Nicole shared on Twitter how cognitive behavioral therapy (CBT) didn’t work for her and actually made things worse. I have known CBT to be one of —if not the most— popular forms of therapy out there so I inquired as to why and for the benefit of the audience what it is.
“Cognitive Behavioral Therapy, also known as CBT, is a type of psychological treatment that focuses on changing negative patterns of thinking and behavior. It’s based on the idea that our thoughts feelings and behaviors are interconnected and that changing one of these components can lead to changes in the others.” Lewis says. CBT is typically structured and time limited with a specific set of goals and challenges. Lewis mentions that “CBT is rooted in Western cultural beliefs and values and may not be culturally appropriate for people with systemic trauma and oppression.”
When I think about financial empathy I also think about how cultural competence is often left off the table when approaching the financial goals, challenges, and realities of Black people and other minorities. That like I mentioned in the article “The Impact of Non-Black Financial Figures on Black Financial Wellness”, “Absent of these factors, we allow others to define our financial success through the lens of their experiences and because their experiences differ, there is easy internal dissonance around what you should be doing, could be doing, or haven’t done financially and how that directly impacts how you feel about yourself and money.”
I asked Nicole how financial professionals can hold space for individuals impacted by financial and other forms of trauma and she mentioned that financial professionals can hold space by implementing these steps:
Be empathetic and non-judgmental. Financial professionals should approach their clients with empathy and without judgement. That should create a safe space where clients can feel heard and understood.
Understand the clients perspective. Financial professionals should take the time to understand their clients situations and perspectives. This involves active listening and asking open ended questions to encourage clients to share their experiences.
Provide education and resources. Financial professionals should provide their clients with education and resources that can help them better understand their financial situation and the options available to them. This may involve referring them to a financial therapist for counseling, debt management programs, or some other resource that can help them navigate their financial challenges.
Foster a sense of empowerment. Financial professionals should help their clients feel empowered to make positive changes in their financial lives. This may involve setting goals and creating a plan to achieve those goals as well as providing ongoing support and encouragement.
Be patient and persistent. Financial trauma can have a long lasting impact on individuals and recovery can take time. Financial professionals should be patient and persistent in their efforts to help their clients overcome their financial challenges and achieve their goals.
If you aren’t a financial professional but want to seek one out, or are currently engaged with one these are the things you should be looking for them to demonstrate along your journey.
As a Certified Financial Education Instructor (CFEI®)and Accredited Financial Counselor (AFC®) I have the skills you need to improve your knowledge, relationship, and behaviors around money. I help you overcome financial trauma and accomplish your financial goals. Reach out with inquiries regarding 1x1 or group bundle sessions or have me speak at your organization. Rahkim@rahkimsabree.com
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Thank you always,
Rahkim